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I let a property via a letting agency but now wish to manage the let myself. I notified the letting agents but we disagree over the wording of a clause in the contract. What is my legal position?
I let a property via a letting agency. The latest tenancy agreement has now lapsed (it was for a 5 year period). I now wish to manage the let myself and have notified the letting agents. However, they quote a clause in their Terms of Business which states: (1) The Management contract is for a minimum of not less than 12 months / or for as long as the current tenant occupies the property. The Landlord must give the Agency three months written notice if vacant possession for the sole purpose of re-occupying the property is required prior to the end of the present tenancy period. Also in an email they state: “If you would like us to give the tenant notice to vacate the property so that you can manage the property yourself we will be happy to re-house him in one of our other properties.” I have not seen a signed copy of these Terms of Business (I have requested them), but it would have all been a long time ago, probably 10 years. My view is that the wording OR is crucial in their clause. I have been in contract with them for 12 months so in my opinion this clause is satisfied. There is no comment such as "whichever is the greater" at the end of that particular sentence. Also I believe that both I and the tenant are free to enter into a contract without the letting agent. The tenant is happy to enter into an agreement directly with me but the letting agents are saying that they may consider going to Court to protect their loss of commission / service charges. The tenant wants a 5 year agreement. What is my legal position here in your opinion please?
The point you make here is a good one and the letting agent's terms have been poorly drafted. Whenever there is ambiguity in a contract, which could mean "A" or "B" and the drafter of the contract claims it means "A" and the other party "B", the Court will always interpret the contract to mean "B". This is called the conta prefendum rule.
If the Court considers that the clause is sufficiently ambiguous it will find in your favour. The final decision will be at the discretion of the Judge and we feel that he will probably think that, although poorly drafted, the contract is sufficiently clear to ensure that it continues so long as your current tenant remains in the property.
Please note that if these terms were not brought to your attention before you entered into your agreement with the letting agents and you had no previous course of dealings with them then this clause is not binding upon you.
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